New York Codes, Rules and Regulations
Title 5 - DEPARTMENT OF ECONOMIC DEVELOPMENT
Chapter VIII - Office Of Waste Prevention Services
Part 70 - Public Accountancy
Section 70.6 - Loan guarantees
Current through Register Vol. 46, No. 12, March 20, 2024
(a) Maximum amount of loan guarantee.
(b) Term. The term for a loan guarantee shall be determined by the department, in its sole discretion, but shall not exceed 10 years.
(c) Applications for loan guarantees. Applications for loan guarantees shall be submitted by the financing institution on behalf of the applicant. In addition to the application requirements set forth in section 70.10 of this Part, applications for loan guarantees shall include the following:
(d) Personal guarantees. The department may require, as a condition to providing a loan guarantee, that the proprietors, partners, officers, directors, or holders of 20 percent or more of the stock of a program recipient personally guarantee repayment of all or a portion of the loan.
(e) Payment of guarantee. The department shall make payment to a financing institution under a loan guarantee after the occurrence of an event of default pursuant to the loan agreement between the program recipient and the financing institution, upon the financing institution delivering a written request for payment to the department by certified mail, return receipt requested, accompanied by a loan history report and evidence satisfactory to the department that the financing institution has taken all reasonable and necessary action to protect its rights and collect the defaulted payments from all available sources.
(f) Calculating the loss. The amount to be paid by the department to the financing institution under a loan guarantee shall be the amount of outstanding principal remaining on the loan, multiplied by the percentage of such outstanding principal guaranteed by the department, less the net proceeds from the sale of secured property and any amounts paid under any other guarantees given to secure the loan.
(g) Guarantee termination. The guarantee of the department shall automatically terminate if: